Data by Consumer data company; Statista has revealed that the rent for apartments in the Central Business District (CBD) in Nairobi is now as much as 126 percent more expensive than the rent costs for apartments and properties in other areas around Kenya’s capital.
In the Nairobi Central Business District (CBD) the rent for a one bedroom apartment is around 432.33 United States Dollars (which is around 50,000 Kenyan Shillings) per month while a one bedroom apartment in the suburbs goes for around 191.33 United States Dollars which is around 22,000 Kenyan Shillings per month.
The rent for a three bedroom apartment in Nairobi Central Business District (CBD) now goes for an average of 990.75 United States Dollars which is around 116,000 Kenyan Shillings per month while a similar three bedroom apartment in areas in the outskirts of Nairobi go for 476.21 United States Dollars which is around 55,000 Kenyan Shillings.
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Statista stated that, “In Nairobi, Kenya, renting a one-bedroom apartment in the city centre cost almost as much as a three-bedroom apartment outside the city centre in 2022.”
The data released by the company is an indicator of the high incomes earned by landlords who own properties in those areas of Nairobi with said high incomes going even higher for landlords who bought or built their properties more than a decade ago when the costs for building and purchasing were significantly more affordable.
One major determining factor for housing properties in capital cities like Nairobi, is Location. This is especially the case for properties close to the Nairobi Central Business District (CBD) as they continue to outperform the properties located significantly farther away from the Nairobi Central Business District (CBD).
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Housing properties close to the Central Business District (CBD) in Muthaiga, Upper Hill, Westlands and Ngara cost significantly more to rent than housing properties in suburbs like Athi River, Kitengela, and Syokimau.
For those who live within the limits of a big city, they pay a higher premium due to their closer proximity to numerous economic facilities, social facilities like eateries and restaurants, as well as jobs.
The rent costs also reflect the significantly more expensive costs faced by owners of Central Business District (CBD) properties with regards to purchasing and maintaining said units.
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Although those who live in the suburbs benefit from more affordable rent it however comes at the cost of having to travel for longer distances which means significantly longer time spent in traffic, more expensive transport costs especially for public transport vehicles like Matatus and more fuel expenses for car owners.
Although Kenya’s capital; Nairobi has since evolved into a Central Business District (CBD) where the majority of the economic activities and formal sector jobs occur the growth in the suburbs has also resulted in a significantly reduced dependence on the Central Business District (CBD). This is because numerous economic communities have been created within said suburbs leading to them having their very own banks, entertainment destinations, as well as modern supermarkets.
Even with this however, properties in the Nairobi Central Business District (CBD) have stayed quite expensive.
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